AML Compliance

Agencies Finalize Community Bank Leverage Ratio Rule

The Federal Deposit Insurance Corporation, Federal Reserve Board, and Office of the Comptroller of the Currency jointly finalized a rule modifying the Community Bank Leverage Ratio framework, lowering the ratio requirement from nine percent to eight percent and extending the grace period from two quarters to four quarters for community banks temporarily out of compliance. The final rule, adopted without change from the November 2025 proposal, takes effect July 1, 2026, providing community banks greater flexibility to use a simpler capital adequacy measure.

OFAC Places Persons and Aircraft on SDN List Under E.O. 13224 and E.O. 13382

On April 21, 2026, OFAC placed seven named individuals and aircraft on the SDN List under Executive Order 13224 (terrorism) and Executive Order 13382 (WMD proliferation). Designations include individuals connected to SEPEHR KAVEH KISH INTERNATIONAL TRADING COMPANY, PISHGAM ELECTRONIC SAFEH COMPANY, MAHAN AIR, and other blocked entities. All property and interests in property subject to U.S. jurisdiction of these persons are blocked, and U.S. persons are generally prohibited from engaging in transactions with them.

OFAC Designates Three Individuals and Two Colombian Entities Under Sudan Sanctions Executive Order 14098

On April 17, 2026, OFAC designated three Colombian individuals and two Colombian entities under Executive Order 14098, which targets persons destabilizing Sudan or undermining democratic transition. Designations include Jose Oscar Garcia Batte and his brother Omar Fernando Garcia Batte, both tied to blocked Colombian entities, and Jose Libardo Quijano Torres linked to FENIX HUMAN RESOURCES S.A.S. Two Colombian entities — FENIX HUMAN RESOURCES S.A.S. and GLOBAL QOWA AL BASHERIA S.A.S. — were also designated. All property subject to U.S. jurisdiction of these persons is blocked, and U.S. persons are prohibited from engaging in transactions with them.

CFTC Charges Army Service Member Gannon Van Dyke with Insider Trading on Polymarket Event Contracts

The CFTC filed a complaint in the U.S. District Court for the Southern District of New York charging Gannon Ken Van Dyke, an active-duty U.S. Army service member from North Carolina, with insider trading on Polymarket.com. Between December 30, 2025 and January 2, 2026, Van Dyke allegedly used classified nonpublic information about Operation Absolute Resolve—a planned capture operation targeting former Venezuelan President Nicolás Maduro—to purchase more than 436,000 "Yes" shares of the "Maduro Out by January 31, 2026?" event contract, generating more than $404,000 in profits. The CFTC is seeking restitution, disgorgement, civil monetary penalties, trading and registration bans, and a permanent injunction. Parallel criminal charges were unsealed by the U.S. Attorney's Office for the Southern District of New York on the same date.

Community Bank Leverage Ratio Final Rule Reduces Minimum Threshold to 8 Percent

The OCC, Federal Reserve, and FDIC jointly issued a final rule amending the Community Bank Leverage Ratio framework to reduce the minimum leverage ratio requirement from greater than 9 percent to greater than 8 percent, providing regulatory relief to qualifying community banks. The rule extends the grace period for banks temporarily failing to meet qualifying criteria to four quarters, provided they maintain a leverage ratio above 7 percent and do not exceed eight quarters of grace over a five-year period. Banks with leverage ratios at or below 7 percent must revert to applicable risk-based capital standards. The rule implements Section 201 of the Economic Growth, Regulatory Relief, and Consumer Protection Act and takes effect January 1, 2020.

Monetary Stabilization Bond Issuance Plan, May 2026

The Bank of Korea published its Monetary Stabilization Bond Issuance Plan for May 2026 on April 23, 2026, announcing the schedule for upcoming bond auctions. The plan covers competitive bidding and fixed-rate tender procedures managed by the Market Operations Team. The announcement includes downloadable attachments in HWP and PDF formats containing full issuance details. Related links reference prior monthly issuance plans for April, March, February, and January 2026.

Bank Holding Company Merger Applications Under BHC Act

The Federal Reserve has published a notice listing bank holding company applications received under the Bank Holding Company Act of 1956. The applications seek Board approval for formations, acquisitions, and mergers of bank holding companies pursuant to Regulation Y and applicable statutes. Interested persons may submit written comments on the standards enumerated in the BHC Act, with comments due not later than May 25, 2026.

Governor Hochul Announces $237.7 Million Recovered for New Yorkers in 2025

Governor Hochul announced on April 23, 2025, that the New York Department of Financial Services recovered $237.7 million for New Yorkers. This represents funds returned to consumers through DFS enforcement actions, restitution orders, and financial recovery efforts during 2025. The announcement highlights the department's ongoing consumer protection activities in the financial services sector.

Governor Hochul Joins NY Farm Bureau to Highlight FY27 Budget Proposals

Governor Hochul joined the New York Farm Bureau and farmers to highlight her FY27 budget proposals. The event took place at the NY Farm Bureau headquarters in Albany. The press release announces this ceremonial event but contains no substantive regulatory content, budget figures, or compliance obligations. This is a routine government communications item publicizing the Governor's agricultural policy priorities.

Clarice Saw Final Judgment $2.4M Fraud Misappropriation

The SEC obtained a final judgment against Clarice Saw, a former New York registered representative, for misappropriating approximately $2.4 million from an elderly customer between December 2021 and March 2022. The Southern District of New York entered the judgment on April 15, 2026, permanently enjoining Saw from violating federal securities laws and ordering her to pay disgorgement of $640,587.30, prejudgment interest of $98,144.04, and a civil penalty of $640,587.30.

Final Judgment - Supreme Power Capital Management Ltd. Misrepresentation

The SEC obtained a final judgment by default against investment adviser Supreme Power Capital Management Ltd. on April 20, 2026, in the Southern District of New York. The firm was charged with making material misrepresentations in its December 2023 Form ADV filing, including falsely claiming Exempt Reporting Adviser status, managing $10 million in U.S. assets, and operating from New York office space that the landlord had no knowledge of. The judgment permanently enjoins the firm from violations of Sections 204(a) and 207 of the Investment Advisers Act and bars it from filing as an Exempt Reporting Adviser, and orders payment of a $1,182,254 civil penalty.

AI Investment Education Foundation Ltd. - Final Default Judgment for Investment Adviser Misrepresentations

On April 20, 2026, the U.S. District Court for the District of Colorado entered a final judgment by default against AI Investment Education Foundation Ltd. for making material misrepresentations and unsubstantiated statements in its June 2024 Form ADV, including false claims about Exempt Reporting Adviser status, Denver office space, $1 million in assets under management, and a private fund. The court permanently enjoined the firm from future violations of Sections 204(a) and 207 of the Investment Advisers Act of 1940, and permanently barred the firm, its owners, and executive officers from filing Form ADV as an Exempt Reporting Adviser. The judgment also orders AI Investment Education to pay a civil penalty of $1,182,254.

ABA Backs FCC KYC Proposal for Originating Providers

The American Bankers Association expressed support for FCC Chairman Brendan Carr's decision to schedule a vote on a proposal to impose stronger 'know your customer' requirements on voice service providers that originate calls. ABA previously urged the FCC to take this step and shared data showing bad actors increasingly place illegally spoofed calls because some providers do not adequately investigate companies before permitting them to originate calls on the provider's network. The FCC has existing rules requiring originating providers to take affirmative, effective measures to prevent callers from originating illegal calls, but has not mandated specific standards for compliance.

FDIC Issues Regulatory Relief for Mississippi, Tennessee Banks Affected by Storms

The FDIC released guidance on April 23, 2026, providing regulatory relief to financial institutions in Mississippi and Tennessee affected by severe weather and flooding. The agency encouraged banks in affected areas to work constructively with borrowers experiencing difficulties, including extending repayment terms, restructuring existing loans, or easing terms for new loans. Banks may receive favorable Community Reinvestment Act consideration for community development loans, investments, and services supporting disaster recovery, and the FDIC will consider regulatory relief from certain filing and publishing requirements.

CBLR Requirement Lowered From 9% to 8%

Federal banking agencies have finalized interagency rulemaking to expand eligibility for the community bank leverage ratio framework, lowering the CBLR requirement from 9% to 8% and extending the grace period for non-compliance from two quarters to four quarters. The changes take effect on July 1, 2026, and were supported by the American Bankers Association as meaningful adjustments that will help community banks reduce regulatory burden while maintaining safety and soundness.

ABA Foundation Lights, Camera, Save! Video Contest Empowers Teen Financial Literacy

The American Bankers Association Foundation's annual Lights, Camera, Save! national video contest invites teenagers to create short videos explaining core financial topics including saving, budgeting, and credit in their own creative style. Community financial institutions mentor participants locally and help elevate student voices to a national stage, with Visa sponsoring the program. The article profiles Montecito Bank & Trust CEO Janet Garufis and a grand-prize recipient, Adam Costa from Dos Pueblos High School in Goleta, California.

30-Year Mortgage at 6.23%, 15-Year at 5.58%

Freddie Mac reported that the 30-year fixed-rate mortgage averaged 6.23% this week, down 7 basis points from 6.30% the prior week and 58 basis points below the year-ago rate of 6.81%. The 15-year fixed-rate mortgage averaged 5.58%, down 7 basis points from 5.65% the prior week and 36 basis points below the year-ago rate of 5.94%. These weekly rate movements reflect current mortgage market conditions as reported by the GSE.

DOJ and DEA Reclassify State-Licensed Marijuana From Schedule I to Schedule III

The Department of Justice and Drug Enforcement Administration announced on April 23, 2026, that state-regulated marijuana products are now classified as Schedule III controlled substances under the Controlled Substances Act, down from Schedule I. The rescheduling reduces federal restrictions on medical marijuana and acknowledges state regulatory frameworks. A hearing is scheduled for June 29, 2026, to consider broader rescheduling of marijuana beyond state-licensed products.

OFAC Sanctions Kok An and 28 Individuals for Southeast Asian Scam Centers

Treasury's Office of Foreign Assets Control sanctioned Cambodian senator Kok An and 28 individuals for allegedly operating scam centers that have defrauded U.S. citizens through romance scams and cryptocurrency investment fraud. The Scam Center Strike Force—comprising Justice, Treasury, and State Departments—also announced charges against two individuals in Burma, the seizure of a messaging app used to recruit trafficking victims, and the seizure of 503 fraudulent web domains. ABA President Rob Nichols stated that banks remain committed to supporting law enforcement and investing in fraud-prevention technology.

FSCMA Revision Adopts Cornerstone Investors to Stabilize IPO Market

The Financial Services Commission announced that a revision bill for the Financial Investment Services and Capital Markets Act (FSCMA) introducing the cornerstone investor system passed the National Assembly plenary session on April 23, 2026. The revision allows bookrunners to conduct preliminary book building before filing securities registration statements and permits pre-allocation of IPO shares to cornerstone investors with a minimum six-month lockup. Cornerstone investor shares will come from the institutional portion of IPO allocations (50 percent for KOSPI and 15 to 35 percent for KOSDAQ), not from the retail tranche, to protect retail investor fairness. The revised FSCMA takes effect six months after promulgation.

RMB1bn 3-Year Bond Tender Results, 11.37 Bid-to-Cover Ratio

The HKMA, as representative of the HKSAR Government, announced results of a 3-year RMB bond tender under the Infrastructure Bond Programme held on 23 April 2026. RMB1.0 billion in bonds were offered with RMB11.374 billion in applications, yielding a bid-to-cover ratio of 11.37 and an average accepted price of 102.85 (1.563% annualized yield). The bonds carry a 2.37% coupon rate and will mature on 10 December 2029. This is a routine government bond auction result announcement with no compliance obligations created for regulated entities.

Instant Message and Incoming Call Alert – Phishing Related to Alipay Financial Services (HK) Limited

The HKMA issued a public alert on 23 April 2026 regarding phishing instant messages and incoming calls falsely associated with Alipay Financial Services (HK) Limited. The relevant stored value facility (SVF) licensee reported the case to the HKMA. Members of the public who may have provided personal information or account credentials in response to these messages or calls are advised to contact the relevant SVF licensee directly and report the incident to the Police or the Anti-Deception Coordination Centre at 18222.

Five Hong Kong Banks - Scam Alert for Fraudulent Websites and Phishing

The Hong Kong Monetary Authority (HKMA) issued a scam alert on 23 April 2026 alerting members of the public to fraudulent websites, internet banking login screens, and phishing instant messages involving five named Hong Kong banks: The Bank of East Asia, Limited, Shanghai Commercial Bank Limited, Chong Hing Bank Limited, Chiyu Banking Corporation Limited, and Ant Bank (Hong Kong) Limited. The HKMA reminded the public that banks will not send SMS or emails with embedded hyperlinks directing customers to bank websites to carry out transactions, and will not ask for sensitive information such as login passwords or One-Time Passwords by phone, email, or SMS. Victims who have provided personal information or conducted financial transactions through these scams are advised to contact the relevant bank and report the matter to the Hong Kong Police Force Crime Wing Information Centre at 2860 5012.

Results of 10-year RMB HKSAR Institutional Government Bonds Tender Through Re-opening

The Hong Kong Monetary Authority announced results of a 10-year RMB institutional government bond tender through re-opening of issue number 10GB3505001 under the Infrastructure Bond Programme. A total of RMB1.5 billion in bonds were offered on 23 April 2026, with RMB10.235 billion in applications received, producing a bid-to-cover ratio of 6.82. The average price accepted was 103.24, implying an annualised yield of 1.908%.

EU Leaders Meet in Cyprus, 23-24 April 2026

European Council President António Costa will chair an informal meeting of EU heads of state or government in Lefkosia and Agia Napa, Cyprus, on 23-24 April 2026. The meeting will include an exchange of views with President of Ukraine on 23 April, and a working session with key regional partners from the Middle East on 24 April. A press conference with Presidents Costa, Christodoulides, and von der Leyen is scheduled for 12:10 on 24 April.

Hardoi Jilla Sahkari Bank Fined ₹1 Lakh for KYC Violation

The Reserve Bank of India imposed a monetary penalty of ₹1 lakh (Rupees One lakh only) on Hardoi Jilla Sahkari Bank Ltd., Uttar Pradesh, by order dated April 21, 2026. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, following a statutory inspection by NABARD with reference to the bank's financial position as of March 31, 2025. The specific charge sustained was the bank's failure to conduct periodic review of risk categorisation of accounts at least once in six months, as required by RBI's KYC directions.

RBI Imposes ₹80,000 Penalty on Ebix Payment Services for KYC Non-Compliance

The Reserve Bank of India imposed a monetary penalty of ₹80,000 on Ebix Payment Services Private Limited for failing to carry out risk categorisation of its customers, in contravention of RBI's Know Your Customer directions. The penalty was imposed under Section 30(1) read with Section 26(6) of the Payment and Settlement Systems Act, 2007, following a statutory inspection covering the reference period June 2024 to May 2025. After issuing a show-cause notice and considering the company's reply, RBI found the charge sustained. Payment service providers should review their customer risk-categorisation procedures to ensure compliance with KYC norms.

RBI Releases April 2026 Bulletin With Policy Updates

The Reserve Bank of India released its April 2026 monthly Bulletin on April 23, 2026. The Bulletin contains the bi-monthly monetary policy statement from April 8, 2026, two speeches, an article on the State of the Economy, and current statistics. Key updates include a revision to Consumer Price Index Table 19 in line with the new CPI base year (2024=100) and the addition of core inflation data (CPI excluding food and fuel). The State of the Economy article notes that conflict in West Asia intensified global supply chain pressures in March, with some easing in April; domestic economic activity showed resilience; CPI inflation edged up in March driven by fuel and food; money market and bond yields moderated after the temporary ceasefire; and trade deficit narrowed to a nine-month low as imports slowed and exports expanded.

Money Market Operations, April 22, 2026, Rates

The RBI published daily money market operations data for April 22, 2026, reporting overnight segment volume of ₹6,71,744.61 crore at a weighted average rate of 5.15% (range 4.00-6.35%). Standing Deposit Facility operations absorbed ₹1,81,000.00 crore at 5.00%, with net liquidity absorbed of -₹3,30,024.11 crore. This statistical release provides reference data for scheduled commercial banks and financial institutions monitoring money market conditions — no compliance obligations are created.

Underwriting Auction Government Securities ₹32,000 Crore April 24

The Reserve Bank of India has announced a government securities underwriting auction scheduled for April 24, 2026, with a total notified amount of ₹32,000 crore across four securities. The auction covers 6.03% GS 2029 (₹11,000 crore), 6.68% GS 2033 (₹11,000 crore), 7.24% GS 2055 (₹5,000 crore), and New GOI SGrB 2056 (₹5,000 crore), with Minimum Underwriting Commitment amounts of ₹262 crore and ₹120 crore per Primary Dealer respectively. Primary Dealers may submit Additional Competitive Underwriting bids electronically through RBI's e-Kuber system between 09:00 A.M. and 09:30 A.M. on the auction date, with underwriting commission credited on the day of securities issue.

RBI Approves Voluntary Amalgamation of Mekhar Urban Co-op Bank with Nagpur Nagarik Sahakari Bank

The Reserve Bank of India has sanctioned the Scheme of Amalgamation of The Mekhar Urban Co-op Bank Ltd., Mekhar with Nagpur Nagarik Sahakari Bank Ltd., Nagpur under Section 44A(4) read with Section 56 of the Banking Regulation Act, 1949. The Scheme takes effect on April 24, 2026, with all branches of The Mekhar Urban Co-op Bank Ltd. operating as branches of Nagpur Nagarik Sahakari Bank Ltd. from that date. This is a single-party voluntary consolidation and does not introduce new industry-wide obligations.

RBI Imposes ₹80,000 Monetary Penalty on Dr. Babasaheb Ambedkar Nagari Sahakari Bank

The Reserve Bank of India imposed a monetary penalty of ₹80,000 on Dr. Babasaheb Ambedkar Nagari Sahakari Bank Ltd., Aurangabad for non-compliance with directions on Exposure Norms and Statutory Restrictions for Urban Cooperative Banks, and operational instructions under the Supervisory Action Framework. The penalty was imposed following a statutory inspection with reference to the bank's financial position as of March 31, 2025, and after the bank was given opportunity to show cause. The bank was found to have exceeded prescribed regulatory ceilings on certain advances and offered deposit interest rates higher than those offered by the State Bank of India.

NCUA Seeks Comment on Enhancing and Streamlining Data Collection

The National Credit Union Administration (NCUA) has published a Request for Information (RFI) soliciting stakeholder feedback on opportunities to enhance and streamline data collections from credit unions. The RFI specifically targets data gathered through the 5300 Call Report, 5310 Corporate Call Report, and Form 4501A Profile, which collectively provide NCUA with details on credit unions' financial condition, management changes, payment systems, and designation status. Comments are due by June 23, 2026, and may be submitted via Federal eRulemaking Portal, regulations.gov, fax, mail, or email.

OFAC Sanctions 17 Individuals, 9 Entities; Sinaloa Cartel, Cambodian Financial Fraud, Indian Drug Networks

OFAC has added 17 individuals and 9 entities to the Specially Designated Nationals (SDN) List. The designations target Mexican nationals linked to the Sinaloa Cartel (drug trafficking under E.O. 14059), Cambodian individuals and financial institutions linked to cyber-enabled fraud schemes (E.O. 13694), Indian entities and nationals linked to drug trafficking networks, and Guatemalan nationals. Two individuals are designated under both the drug trafficking and terrorism (E.O. 13224) programs with secondary sanctions exposure. OFAC simultaneously issued Cyber-related General License 2 authorizing limited transactions with Anco Water Supply Co. Ltd.

FIU-NL Transaction Postponement Power Effective July 2026

FIU-the Netherlands will acquire the legal power to request transaction postponements from reporting entities under Article 17a of the Anti-Money Laundering and Anti-Terrorist Financing Act (Wwft), effective 1 July 2026, with parallel provisions in the Implementation Act on the Prevention of Money Laundering and Terrorist Financing (Iwt, Article 3.6) taking effect 10 July 2027. Reporting entities—principally banks and crypto/payment service providers—must comply with postponement requests immediately and may hold transactions for a maximum of five business days (ten days for foreign FIU requests). Clients must be notified of the postponement without this breaching the tipping-off prohibition under Article 23 Wwft, and reporting entities enjoy liability protection under Article 20c Wwft for complying with postponement requests.

Five Men Sentenced, £1.4M Ketamine Seizure

Five men have been sentenced for their roles in smuggling approximately £1.4 million worth of ketamine into the UK via a fishing boat. The operation targeted an organised crime group (OCG) involved in trafficking the Class B drug to Suffolk. The sentencing follows enforcement action by the NCA's ROCU (Regional Organised Crime Units) and partner agencies.

Trevor Fernandes Gets Life, 67 Additional Charges

Trevor Fernandes has been sentenced to life with a minimum term of 19 years at Southwark Crown Court for multiple child sexual abuse offences. In addition to the counts for which he was convicted, 67 further charges across 18 counts were taken into consideration by the court. The sentencing was announced by the National Crime Agency.

UIF Argentina and Universidad Notarial Argentina Sign Academic Cooperation Agreement

The Unidad de Información Financiera Argentina signed a framework agreement with Universidad Notarial Argentina on February 6, 2026, to develop academic training programs on anti-money laundering (LA), counter-terrorism financing (FT), and weapons of mass destruction proliferation financing (FP). Universidad Notarial Argentina will design curricular content aligned with current Argentine regulatory standards, providing notaries (escribanos) — who are obligated reporters under UIF regulations — with tools for risk identification and professional compliance. UIF Human Resources Deputy Director María Celeste Baroli will coordinate the implementation of specific agreements and training proposals bearing UIF's endorsement.

INTERPOL NCB Conference Lyon, 8th Apr

INTERPOL's 21st annual Heads of National Central Bureaus (NCBs) Conference was held in Lyon, France on April 8, 2026. Nearly 300 delegates from 148 countries attended to address quality standards, database use, and leadership development across INTERPOL's global network. The conference covered topics including NCB quality standards compliance, NEXUS secure messaging deployment, the I-Familia missing persons database, female officer leadership development, global scam centres, organized crime convergence, and artificial intelligence in criminal activity.

INTERPOL Warns AI-Enhanced Fraud 4.5x More Profitable Than Traditional Methods

INTERPOL's 2026 Global Financial Fraud Threat Assessment finds AI-enhanced fraud is 4.5 times more profitable than traditional methods, with 'Agentic AI' systems capable of autonomously executing complete fraud campaigns. The report documents that criminal networks are increasingly collaborating with specialized money laundering groups, and terrorist groups in parts of Africa have been found using crypto-based fraud schemes as a funding source. Since 2024, INTERPOL has seen a 54% increase in fraud-related Notices and Diffusions, supporting 1,500+ transnational fraud cases involving USD 1.1 billion in lost assets. INTERPOL is launching Operation Shadow Storm, a UK Home Office-funded international task force, alongside new National Anti-Scam Centre guidelines to coordinate global response.

INTERPOL-UNODC Global Fraud Summit Concludes with Anti-Fraud Call to Action

The Global Fraud Summit in Vienna, co-hosted by INTERPOL and the United Nations Office on Drugs and Crime (UNODC) with support from Canada, Singapore, and the United Kingdom, closed on 17 March 2026 with pledges from representatives of 47 countries and organizations to strengthen cooperation and disrupt systems enabling fraud. Over 1,300 participants from government, law enforcement, technology companies, financial institutions, and civil society attended the two-day event, which highlighted the role of generative AI tools including deepfakes in facilitating sophisticated fraud schemes. The summit also saw the publication of the second edition of INTERPOL's Global Financial Fraud Threat Assessment, with global losses from organized fraud estimated at USD 442 billion by the Global Anti-Scam Alliance.

FINTRAC CEO Sarah Paquet, C.D. Howe Institute Speech

FINTRAC CEO Sarah Paquet delivered a policy speech at the C.D. Howe Institute in Toronto on April 23, 2026, outlining the threats posed by money laundering, terrorist financing, and sanctions evasion to Canada. She cited that over 4,000 organized crime groups operate across Canada, generating billions in illicit profits annually, and that 80 percent of businesses lost one to five percent of profits to AI-powered fraud attacks according to a KPMG survey. The speech highlighted FINTRAC's role as Canada's financial intelligence unit, reporting that last year it identified over 8,600 subjects of interest, analyzed more than 1.3 million financial transactions, and supported hundreds of law enforcement and national security investigations.

Agencies Finalize 8% Community Bank Leverage Ratio Rule

The FDIC, Federal Reserve Board, and Office of the Comptroller of the Currency jointly finalized amendments to the Community Bank Leverage Ratio Framework, lowering the required ratio from nine percent to eight percent and extending the grace period for temporary non-compliance from two quarters to four quarters. The rule, adopted without change from the November 2025 proposal, takes effect on July 1, 2026 and is designed to provide community banks with greater flexibility and reduced regulatory burden while maintaining safety and soundness requirements.

Gould Statement on Community Bank Leverage Ratio Final Rule

Comptroller of the Currency Jonathan V. Gould issued a public statement on April 23, 2026, regarding the Community Bank Leverage Ratio final rule. The statement expresses support for the rule, which Gould says provides community banks with greater flexibility to use a simpler measure of capital adequacy and reduces regulatory burden. Gould emphasizes the OCC's commitment to targeted regulatory reforms that ease burden on community banks and foster local economic growth while preserving safe and sound operations.

Final Rule Lowers Community Bank Leverage Ratio to 8%, Extends Grace Period to Four Quarters

The FDIC, Federal Reserve Board, and OCC jointly finalized a rule lowering the community bank leverage ratio from 9% to 8% and extending the grace period from 2 quarters to 4 quarters for community banks that temporarily fall out of compliance. The final rule, adopted without change from the November 2025 proposal, takes effect July 1, 2026, and continues to allow community banks to use a simpler leverage ratio measure instead of calculating risk-based capital ratios.

FDIC PRA Extension Fast Track Generic Clearance Qualitative Feedback OMB 3064-0127

The FDIC seeks public comment by June 22, 2026 on extending OMB Control No. 3064-0127, the Fast-Track Generic Clearance for the Collection of Qualitative Feedback. The extension is without change to the existing collection covering voluntary quality-of-service surveys on bank supervisory processes. Estimated annual burden is 17,000 hours across approximately 20 surveys deploying to an average of 850 respondents each, with each survey taking no more than one hour per respondent.

FDIC Modifies Privacy Act System of Records FDIC-012, Financial Information Management Records

The FDIC is modifying its existing Privacy Act system of records FDIC-012, 'Financial Information Management Records,' updating sections including Authority for Maintenance, Purpose(s), Categories of Individuals, Categories of Records, Record Source Categories, Routine Uses, and Policies for Storage, Retention, and Disposal. The modification action becomes effective April 23, 2026; routine uses become effective May 26, 2026, unless the FDIC makes changes based on comments received. Written comments are due on or before May 26, 2026. New routine uses authorize disclosure for federal statute or treaty compliance, Office of Inspector General audits, and travel administration through GSA and third-party contractors.

MoneyGram International SA Sanctioned by ACPR for AML Violations

The ACPR Sanctions Commission issued Decision No. 2024-06 on March 19, 2026, imposing sanctions on MoneyGram International SA, a foreign payment institution, for violations related to anti-money laundering and counter-terrorism financing (AML/CFT) compliance obligations. The decision addresses deficiencies in MoneyGram's internal controls and compliance procedures that failed to meet French regulatory standards for combatting financial crime.

OTSI Trade Sanctions Licence Assessment Guidance

OTSI has published detailed guidance on its four-stage assessment process for trade sanctions licence applications covering both goods and services. The guidance clarifies that one 'activity' equals one prospective licensee providing one type of activity to one prospective recipient, meaning multi-product exports or multi-recipient exports are assessed as separate activities. Applicants must provide detailed information at each stage including prospective licensee identity, prospective recipient ownership structures, and specific activity descriptions to enable OTSI to determine whether UK sanctions apply and whether a licence or No Licence Required notification will be issued.

EU Adopts 20th Sanctions Package Targeting Russia Energy Revenues, Crypto, Military

The Council of the European Union adopted its 20th package of sanctions against Russia on 23 April 2026, targeting key sectors that fund Russia's war of aggression against Ukraine. The package includes a maritime services ban forming the basis for a future prohibition on transporting Russian oil and petroleum products, 36 new energy sector designations, port access bans for 632 vessels including 46 new vessels plus Murmansk, Tuapse, and Karimun ports, and LNG restrictions including a ban on maintenance services for Russian LNG tankers and ice-breakers. Financial measures include transaction bans on 20 Russian banks, sectoral bans on Russian crypto providers and RUBx transactions, and a digital rouble access ban, while 58 new military-industrial designations include 16 third-country entities in China, UAE, Uzbekistan, Kazakhstan, and Belarus. Expanded trade restrictions cover €360M+ in export bans and €570M+ in import bans on raw materials, metals, chemicals, and steel products.